According to some reports GlaxoSmithKline Plc is preparing to start a sale of its $3.7-billion stake in Unilever’s listed India unit.
According to Bloomberg report says Glaxo plans to offload a part or all of its 5.7 per cent holding in Hindustan Unilever through a series of block trades, which could start as soon as the next few days.
The company is in discussions with advisers on when to launch the transactions, according to people close to the development.
The drug maker had received the stake, valued at $3.7 billion as of Wednesday, as part of the payment for the sale of a portfolio of assets that was completed this month.
In December 2018, Unilever said it would acquire the health food drinks brands of Glaxo in India and Bangladesh and other markets for 3.3 billion euros ($3.6 billion) in cash and shares in Hindustan Unilever.
As part of the transaction, Glaxo would receive a 5.7 per cent stake in the Indian unit.
On Wednesday, the HUL stock came under pressure even as the benchmark Sensex surged nearly 606 points to end at 32720.16. The HUL share ended at Rs 2232.10 — loss of 2.55 per cent, or Rs 58.30, over Tuesday’s close on the BSE.
The HUL board is slated to meet on Thursday to consider the results for the March quarter of 2020.
Earlier this month, the board had also approved the acquisition of Horlicks, a popular health drink brand, from GSK for a consideration of 375.6 million euros (Rs 3,045 crore), exercising the option available in the original agreement between its parent firm Unilever and GSK.